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| Russia To Put Major Restriction On Scrap Exports From April |
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Russia is on track to impose a major restriction on ferrous scrap exports from the east of the nation in and after April this year, a trade barrier that threatens to affect ferrous scrap imports into South Korea from Russia. The government of Russia issued a decree in December last year that limits ferrous scrap exports to shipments out of Kamchatka Peninsula as from March 30 this year. Kamchatka Peninsula is situated between the Sea of Okhotsk and the Bering Sea. As a result, the decree can be interpreted as a ban on ferrous scrap exports out of any port other than what is located on Kamchatka Peninsula. It is Petropavlovsk-Kamchatski that represents the largest port on Kamchatka Peninsula. Given the government's decree this time, it is likely that Russian ferrous scrap exports will be virtually limited to ones out of Petropavlovsk-Kamchatski from April onward. But it is understood that there are several obstacles to export shipments there. Among other things, Petropavlovsk-Kamchatski is iced up in winter. On their part, Russian ferrous scrap exporters are opposed to what they describe as compulsory exports out of Petropavlovsk-Kamchatski on grounds of increased domestic transport costs and higher ocean freight rates than before for export shipments to South Korea. At present, many of Russian ferrous scrap exports to East Asia are shiploaded in the Primorsky Kray maritime region in the Russian Far East. Accordingly, South Korea's electric steelmakers are bound to take a beating if no export shipments of Russia ferrous scrap take place at ports in the Russian Far East. The Korean electric steelmakers usually negotiate ferrous scrap imports from Russia for shipments out of Far Eastern ports there such as Vladivostok and Nakhodka. In Russia, meanwhile, there are signs that ferrous scrap exporters and regional port authorities are in action to present the central government with their views in writing or to file cases with local courts, moves that are intended to seek amendments to the decree in question such as the designation of more ports for export shipments. Besides, local stevedoring companies are said to be concerned about a major influence from the decree on their operations. With a backlash from the parties concerned, it is uncertain whether the decree will become effective for real. There is even speculation that the decree may take effect for a limited period. In this connection, some experts point out that there is no pressing background for a virtual ban on ferrous scrap exports out of Russia. Therefore, a possibility still remains that the Russian government will retract or amend the decree. Moreover, there is speculation that the decree in question may be aimed at helping electric steelmaker Amurmetal facilitate its procurement of domestic ferrous scrap. Amurmetal operates its works in Khabarovsk Region. |
| last modified : Tue 17 Feb, 2009 [10:30] |
